These 3 midcap stocks are good bet in retail basket. Here's why
  • 12 October, 2022

  • There is more potential for midcap stocks in the latest roller coaster tone of markets, and Centrum has given a buy rating on three stocks in the retail segment. These companies catering largely to the urban population and operating in mid-premium segment are likely to outperform their peers.

Despite the current volatility shocks due to macroeconomic conditions, midcap stocks have performed better compared to the benchmark Sensex in the broader market. In the past three months, on BSE, where Sensex climbed by more than 5%, the Midcap index has jumped by nearly 9%. There is more potential for midcap stocks in the latest roller coaster tone of markets, and Centrum has given a buy rating on three stocks in the retail segment. These companies catering largely to the urban population and operating in mid-premium segment are likely to outperform their peers.

In a report, Akhil Parekh Research analysts, and Kevin Shah Research Associate at Centrum are optimistic in 3 stocks in the midcap basket.

In their Q2FY23 preview report for midcaps, the analysts said, "from our retail universe we expect companies catering largely to the urban population and operating in mid premium segment to outperform its peers. Metro Brands, Trent and Page are expected to register healthy YoY growth as the impact of inflation on the target consumer audience of these companies is least as of now. Also, the strong brand strength has allowed these companies to pass on the RM inflation with relative ease during last year."